Factors Affecting Corporate Climate Change Disclosures: An Empirical Investigation on Listed Firms Operating in Bangladesh

Abstract

The study examines the impact of the various firm characteristics on the level of corporate climate change disclosure by Bangladeshi firms. It includes 450 firm-year observations for firms that are listed on Bangladesh's Dhaka Stock Exchange (DSE). The authors undertake a panel regression analysis to look at the relationship between various factors related to firms' characteristics and corporate climate change disclosures using ordinary least square (OLS) and two-stage least square (2SLS) methods. This study claims that larger firms and environmental award have a positive effect on the firm's propensity to disclose climate change information. However, study outcomes also find a negative relationship between climate disclosure and other firm factors such as economic performance, age, level of indebtedness, and the existence of an environmental committee. This research provides directives for business experts, policymakers, and regulatory authorities to formulate more realistic policies for business concerns to make them aware to disclose climate change information.